Clifford Chance

Clifford Chance advises Komerční banka on financing of CSAD Praha Holding acquisition by Penta Real Estate

Clifford Chance team in Prague has provided legal advisory to Komerční banka in connection with the financing of the acquisition of CSAD Praha Holding by Penta Real Estate. The transaction, which involves the purchase of prime parcels in Prague, marks a significant move in the real estate development sector.

The financing for this landmark transaction was arranged by a syndicate of three bank groups, including Česká spořitelna, Raiffeisen Group, and with Komerční banka taking the lead role. While the purchase price remains undisclosed, the deal encompasses strategically significant land, such as Karlín, Smíchov, Zličín and other areas in the city center.

The scope of the deal extends from Masarykovo nádraží to Pernerova street, covering significant portions of land above one of Prague's metro interchange stations. Penta now holds a substantial stake in the development potential of the city center. Aleš Novák, Transaction Manager Real Estate Finance at Komerční banka stated: "We are committed to supporting big and transformative initiatives that contribute to the development and growth of the real estate sector. This collaboration aligns with our dedication to fostering innovation and sustainable progress in the industry."

"It was a very interesting transaction that not only tested our expertise in navigating complex financial structures but also showcased our ability to seamlessly integrate legal solutions across multiple disciplines. The collaboration on this transaction was a compelling intersection of financial and real estate law," said Milan Rákosník, counsel at Clifford Chance, who played a key role in the legal advisory team.

Penta Real Estate was formed by separating the real estate division from the company Penta Investments, whose origins date back to 1994. Penta Group entered the real estate sector in 2005 and has since become the leader in the real estate market in the Czech Republic and Slovakia. At present, the portfolio includes more than 35 projects in the commercial, residential and retail sectors.

The Clifford Chance team working on this transaction was led by counsel Milan Rákosník with primary support from junior associate Ondřej Šteco. The team further consisted of senior associate Hana Čekalová, associates Josef Lysoněk and Jan Christelbauer and junior associates Šimon Dušek, Šimon Vaněk and Adam Fanta.